Preliminary Concept for DEQ Performance Track-Style Program - 8/7/02 draft

Program Concept				Eligibility Criteria
Tier	Requirement	Time	Incentives	Past/Current Compliance	Ongoing Compliance
						Application	How Reviewed
1a	Develop an EMS	EMS-type plan required within 2 years to stay in Performance Track	Technical assistance in developing EMS	Applicant is not in Significant Noncompliance and/or has not had a High Priority Violation for one year. No criminal violations for the past three years. (Feds are five years - may want to adjust) No open/unresolved violations -compliance schedule agreed to in writing could constitute adequate resolution of violation for participation. No pattern of noncompliance which indicates a “sloppy shop”	Significant Noncompliance or High Priority Violations will be grounds for removal.	Application to include a summary of what the company does, what permits they hold and regulations they are subject to, and what they hope to accomplish in the program. It is also to include a summary of the company’s compliance status - including a statement that it is not in SNC or HPV and that all NOVs have been resolved. Application will be copied and distributed to each division. Each program must agree - with or without conditions. If acceptance is conditional, the issue must be resolved within a year. “EMS type plan” must follow guideline outlined or ISO-14001	Acceptance decided by DEQ (with comments, as appropriate from Local Health) Application may be shared with EPA if applicant is interested in simultaneously applying to EPA’s program.
1b	Begin implementing EMS - Formal acceptance into program		Technical assistance with EMS (Training, “Turbo-Tax” type CD, response to questions) Recognition - public listing on website
2	EMS implemented for one full cycle. 2-3 ongoing projects to improve environmental performance. (Project is defined as something that is not required by rule. See list) DEQ can do site visits for verification. Public outreach may be required. Opportunity to mentor others.	Annual reports to document progress. Do not need to move to Tier 3. May remain in Tier 2 as long as project active and improvements are being made. Renewal term will be set.	May include: - Selected permit enhancements - Facility specific incentives (negotiated) - Reduced % or higher priority on loan funds (would require Board approval) - Reduced oversight - Self-audit -Annual meeting with DEQ policy leaders - Publicity	See Above	Significant Noncompliance or High Priority Violations will be grounds for removal. Need to define circumstances where benefits would cease until issue is resolved and circumstances where participant would be dropped from program.	Application documenting “EMS-type plan” (including ISO-14001) has been implemented for one full cycle plus proposal for 2-3 projects to improve environmental performance. Project is defined as something that is not required by rule and which falls within guidelines on list.	Multi-interest review panel will make recommendation to DEQ based on set criteria. If the recommendation is no, then applicant needs to be informed why and what needs to be fixed to allow entry.
3	“Environmental Heroes” Requirements of Tier 2 met for at least three years. Capstone environmental project. Public outreach may be required. Opportunity to mentor others.	Annual report to document progress. DEQ can do site visits for verification	See Above. (Incentives more significant than for Tier 2)	See Above.	Significant Noncompliance or High Priority Violations will be grounds for removal.	Application documenting “EMS-type plan” (including ISO-14001) has been implemented for three full cycles plus proposal for project that makes a significant environmental improvement.	Multi-interest review panel will make recommendation to DEQ based on set criteria.

Within Air Quality, a High Priority Violation is

1. failure to obtain a PSD permit;

2. a violation of an air toxics requirement;

3. a violation by a synthetic minor of an emission limit or permit condition that affects the source's PSD, NSR, or Title V status;

4. a violation of any substantive term of any local, state, or federal order, consent decree or administrative order;

5. a substantial violation of the source's Title V certification obligations;

6. a substantial violation of the source's obligation to submit a Title V permit application;

7. violations that involve testing, monitoring, record keeping or reporting that interferes with enforcement or determining source's compliance;

8. a violation of an allowable emission limit;

9. Clean Air Act violations by chronic or recalcitrant violators;

10. substantial violations of the clean Air Act Section 112(r) requirements (short version from EPA's Policy on The Timely and Appropriate Enforcement Response to HPVs)

Within Water Quality, Significant Noncompliance is defined in two ways:

1. Acute violations of discharge permit limits that is an exceedence of the permit limit which is more than the "Technical Review Criteria" (TRC) which is 40% for conventional pollutants and 20% for more toxic pollutants.

2. Chronic violation is when there are violations of any permit provision (slight limit exceedence less than the TRC, not reporting, etc.) for any four months out of a six-month running period.